Learning Bank - How Banks Work

What happens to your money when you put it in a bank? It doesn't remain locked away in the bank vault – instead, the money you deposit into a savings account is used by the bank to make loans to other people and businesses in your community so that they have the money to pay for big expenses like houses and cars, or even to operate a business. The bank charges interest on the loans, and it pays you interest for using your money to make these loans while keeping any remaining money as a profit.